Kresge v. Crowley
Kresge v. Crowley
Opinion of the Court
delivered the opinion of the Gourt:
Under sec. 492 of the Code [81 Stat. at L. 1267, chap. 854], no estate of inheritance or for a longer term than one year may “be created or take effect except by deed signed and sealed by the grantor, lessor, or declarant.” Under sec. 498 no deeds of conveyance of either real or personal estate by individuals may be executed or acknowledged by attorney. Section 1116 [31 Stat. at L. 1367, chap. 854] provides that every estate in land for a greater term than one year, attempted to be created by parol or otherwise than by deed as above specified, “shall be an estate by sufferance.”
The foregoing provisions, appellant points out, are based upon considerations of public policy; and he contends that the bill should be dismissed because the alleged lease described therein “is void upon its face and cannot bo made the foundation of a cause of action in either a court of law or a court of equity.”
While the Statute of Frauds is equally binding upon courts of equity and courts of law, the rigid requirements of the statute frequently have been relaxed in courts of equity “for the purpose of hindering the statute made to prevent frauds from becoming the instrument of fraud.” Purcell v. Miner (Purcell v. Coleman) 4 Wall. 513, 517, 18 L. ed. 435, 436. And where one of two contracting parties has been induced or allowed to altor his position on the faith of a contract wfithin the statute, “to such an extent that it would bo fraud on the part of the other party to set up it's invalidity, courts of equity hold that the clear proof of the contract and of the acts of part performance will take the case out of the operation of the statute, if the acts of part performance were clearly such as to show that they are properly referable to the parol agreement.”' Williams v. Morris, 95 U. S. 444, 457, 24 L. ed. 360, 362.
The distinct ground upon which courts of equity enforce the specific performance of a contract within the statute is “that otherwise one party would be enabled to practise a fraud upon the other; and it could never be the intention of the statute to enable any party to commit such a fraud with impunity. Indeed fraud in all cases constitutes an answer to the most solemn
In the present case the terms of the contract are susceptible of chair proof. It is alleged that the letter which Goldenbcrg authorized written, and which was handed to appellee in Golden-berg's presence, embodied the terms of the contract. That letter thereafter became merged in the contract itself, that is, the soealled lease, and had appellee immediately discovered its infirmity a court of equity would not have hesitated to compel Goldenbcrg properly to execute it. The court very properly would have received the so-called lease as evidence of an agreement concerning an interest in land which, under sec. 1117 of the Code [31 Stat. at L. 1367, chap. 854j, may be “signed by the party to be charged therewith or some other person by him thereunto lawfully authorized.” We perceive no reason why it may not be so received now.
Appellee alleges that in reliance upon his contract he expended $1,250 in buying out the former tenant, for which he would
Appellant, having had notice of the agreement when he took title to this property, is in no better position than his grantor; for a purchaser with notice of a prior equity superior to the rights of his grantor takes his place and is bound to do that which in equity his grantor was bound to do. Specific performance will be decreed against such a purchaser in the same manner and to the same extent as it would have been decreed against his grantor. Cranwell v. Clinton Really Co. 67 N. J. Eq. 540, 58 Atl. 1030; Engler v. Garrett, 100 Md. 387, 59 Atl. 648.
The orders are affirmed, with costs. Affirmed:
Reference
- Full Case Name
- KRESGE v. CROWLEY
- Cited By
- 16 cases
- Status
- Published
- Syllabus
- Ewinr; Statute of Frauds; Specific Performance; Landlord and Tenant; Notice; Velndob and Purchaser. 1. AVlóle the Statute of Frauds is equally binding upon courts of equity and courts of law, its requirements will lie relaxed in equity where to enforce the statute will make it an instrument of fraud. 2. A parol contract concerning land will be specifically enforced, notwithstanding its invalidity under the Statute of Frauds, where the party seeking its enforcement has been induced to alter his position on the faith of the contract to such an extent that it would be a fraud on the part of the other party to set up its invalidity, and where the acts of part performance have been clearly such as to show they are referable to the parol contract. 3. Where on reliance upon a parol agreement for a lease for more than one year, and a lease embodying such agreement, but executed not by the lessor but by his attorney, the tenant entered into possession of the demised premises and expended large sums of money, equity, at the suit of the tenant, will enforce the agreement, notwithstanding the invalidity of the lease under see. 492, 3). C. Godo (31 Stat. at L. 1267, chap. 854), providing that no estate for a longer period than one year may “be created or take effect except by deed signed and sealed” by the lessor; see. 498, that no deed may be executed by an attorney; and see. 3116 (31 Stat. at L. 1367, chap. 854) that every estate in laud for a greater term than one year attempted to be created by parol or otherwise than by deed shall be an estate by sufferance. 4. A purchaser of land with notice of a prior equity superior to the rights of his grantor takes his place, and is bound to do that which in equity his grantor ivas bound to do; and specific performance will be decreed against such a purchaser in the same manner and to the same extent as it would have been decreed against his grantor.